SBP and FIA Join Hands to Cub Money Laundering, Terrorist Finance and Capital Flight

Pakistan financial sector regulator and Federal Investigative Agency join hands to curb white color crime. The State Bank of Pakistan (SBP) and Federal Investigation Agency (FIA) have signed a Memorandum of Understanding (MoU) to further formalize  coordination between the two institutions. A SBP announcement disclosed.

 This MOU was sing by Governor, SBP Mr. Yaseen Anwar and Director General FIA, Mr. Saud Ahmed Mirza at SBP Karachi Office Monday, January 14, 2014 in the presence of senior officials of both organizations.

 Central Bank hope that “This MoU will improve and elevate collaboration, cooperation, working relationship and mutual assistance between both organizations. This will help in  monitoring and controlling Anti-Money Laundering regulations in the financial sector of Pakistan.”

A Source close to this development informed that this MoU was the outcome of federal government advice to curb Money Laundering, Terrorist financing and flight of capital.  

During the meetings in federal cabinet and kitchen cabinet of PML(N) led government both agencies complains that due to their limited resource and legal authority they are not able to act efficiently.

In October last year the Governor SBP Yaseen Anwer publically admitted capital flight and need of close cooperation with FIA to curb this.

 “Some $25 million are flowing out of the country in briefcases through Karachi, Lahore and Islamabad airports,” said Anwar on Tuesday while recording a testimony on reasons behind the massive devaluation of local currency against the US currency in front of the Senate Standing Committee on Finance. Express Tribune reported on October, 3, 2013.

The SBP governor said that the central bank was trying to control the smuggling of dollars and would soon sign a memorandum of understanding with the FIA. He also said that reports of suspicious transactions were monitored regularly. After about 3 months of announcement MoU finally inked.

 This MoU allow to form a Coordination Committee comprising officials from each side. Committee members nominated by the Governor SBP and DG FIA. The main focus of this Committee will examine and develop coordination between the two organizations.

Coordination Committee will ensure to enforcement of financial sector regulations. It’s special emphasis will be on Anti-Money Laundering (AML) and prevention of terrorist financing.

 The Committee shall also prepare and agree on Standard Operating Procedures (SOPs) to be followed by the FIA while initiating enforcement enquiries that hone in on AML violations.